HOUSTON – A Houston man is facing 20 years in prison for running a fake investment operation using cryptocurrency.
According to the U.S. Attorney’s Office of the Southern District of Texas, Samuel Ayala-Ibarra, 45, pleaded guilty to running JASTBITME, a Houston-based company that promised high returns on cryptocurrency investments.
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Court records said he set up fake documents to show growth and returns and used this to promote reinvestments to clients. However, the money these clients invested, prosecutors said, was actually used for personal gain and to repay earlier investors. He also paid others to recruit new clients.
A U.S. District Judge is set to sentence Ayala-Ibarra on November 3, where he could face up to 20 years in federal prison and a possible fine of up to $250,000 for each of three counts of wire fraud.
Until then, he remains in custody.